The Nasdaq 100 Index soared over 10% on Wednesday, marking its biggest single-day gain in 17 years, after U.S. President Donald Trump announced a 90-day pause on the controversial reciprocal tariffs for countries that have not retaliated against the United States.
The index surged 1,725.80 points to close at 18,816.20, as investors cheered the possibility of reduced trade friction following escalating global tensions. The dramatic rally also coincided with strength in major tech stocks, particularly Tesla, Nvidia, and Apple, which were among the biggest beneficiaries of the policy shift.
The relief rally came after Trump made twin announcements late Tuesday:
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Tariffs on China raised from 104% to 125%, effective immediately.
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90-day pause for more than 75 countries that have contacted U.S. officials for trade negotiations, with a substantially lowered reciprocal tariff of 10% during this window.
“Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff… to 125%, effective immediately,” Trump posted on Truth Social.
He added, “For countries that have not retaliated… I have authorized a 90-day PAUSE… with a 10% tariff.”
The sharp rise in the Nasdaq 100 came alongside rallies in other major indexes as well. The Dow Jones Industrial Average rose over 7%, and the S&P 500 gained nearly 6.7%, with sentiment boosted by signs of temporary trade stabilization.
The White House said the tariff pause applies to countries including India, Vietnam, Japan, and South Korea, while nations that imposed retaliatory measures — such as China, Canada, and the European Union — would face full-rate tariffs.
The escalation in U.S.-China tariffs has ignited fears of a global trade war in recent weeks. Earlier this week, China raised its tariffs on U.S. goods from 34% to 84%, in retaliation to Trump’s earlier 104% levy. China has also released a six-chapter white paper defending its trade stance and called for mutually respectful dialogue.
